Reliance Q1 FY27: Record EBITDA and Jio IPO Update
Reliance beat the highest street estimate by 10% with record EBITDA of Rs 54,067 Cr. Full Q1 FY27 segment breakdown, O2C recovery, and Jio IPO timeline.
Did Reliance Beat Street Estimates?
Yes. Reliance Industries delivered a clear beat over the street's highest expectations in Q1 FY27.
| Metric | Highest Estimate | Actual | Beat/Miss |
|---|---|---|---|
| Revenue | Rs 3,28,000 Cr | Rs 3,40,257 Cr | Beat by 3.7% |
| EBITDA | Rs 49,100 Cr | Rs 54,067 Cr | Beat by 10.1% |
| PAT | Rs 24,593 Cr | Rs 23,196 Cr | Missed by 5.7% |
Revenue and EBITDA came in well above the highest brokerage estimate. PAT fell slightly short of the most bullish projection from Equirus Securities, mainly due to higher finance costs from 5G asset capitalization and increased depreciation.
Street estimates vs. actual results for Q1 FY27 are below.
Key Financial Highlights
India's largest company by market capitalization published its Q1 FY27 results on July 17, 2026, posting record quarterly recurring EBITDA.
| Metric | Q1 FY26 | Q4 FY26 | Q1 FY27 | YoY Change |
|---|---|---|---|---|
| Revenue | Rs 2,73,252 Cr | Rs 3,25,290 Cr | Rs 3,40,257 Cr ($35.9 Bn) | +24.5% |
| EBITDA | Rs 49,100 Cr | Rs 48,588 Cr | Rs 54,067 Cr ($5.7 Bn) | +10.1% |
| PAT | Rs 21,859 Cr | Rs 20,589 Cr | Rs 23,196 Cr ($2.5 Bn) | +6.1% |
Note: Q1 FY26 PAT excludes a one-time Rs 8,924 crore profit from the sale of listed investments. If that one-time gain is included in the prior-year base, YoY growth would be 6.8 percentage points lower for EBITDA and 24.6 percentage points lower for PAT.
Quarterly comparison of revenue, EBITDA, and net profit is below.
Segment Performance
Consumer businesses (Jio and Retail) continue to contribute over 50% of consolidated EBITDA, while O2C delivered standout growth for the quarter.
| Segment | Q1 FY26 EBITDA | Q1 FY27 EBITDA | YoY Change |
|---|---|---|---|
| Digital Services (Jio) | Rs 18,312 Cr | Rs 21,255 Cr | +16.1% |
| Oil to Chemicals | Rs 14,511 Cr | Rs 17,010 Cr | +17.2% |
| Retail | Rs 6,381 Cr | Rs 6,309 Cr | -1.1% |
| Oil & Gas | Rs 4,996 Cr | Rs 4,973 Cr | -0.5% |
| Others | Rs 4,900 Cr | Rs 4,520 Cr | -7.8% |
| Total EBITDA | Rs 49,100 Cr | Rs 54,067 Cr | +10.1% |
Segment EBITDA comparison is below.
Q1 FY27 EBITDA contribution by segment is below.
Revenue by Business Vertical
Reliance's diversified revenue base spans six major verticals. O2C remains the largest contributor at 55.2% of total revenue, followed by Retail at 24.7%.
Q1 FY27 revenue breakdown by vertical is below.
Understanding Reliance's Business Model
Reliance's business spans six major verticals, built around three core segments — Oil-to-Chemicals, Retail, and Jio Platforms — alongside newer growth engines in media, FMCG, and new energy.
1. Oil-to-Chemicals (O2C) Business
O2C, Reliance's largest revenue segment, covers transportation fuels, polymers, elastomers, intermediates, and polyester products.
Q1 FY27 Performance: Revenue Rs 2,01,803 crore (+30.4% YoY), EBITDA Rs 17,010 crore (+17.2% YoY) — a 4-year high.
The primary raw material is crude oil, imported from countries such as Russia, Saudi Arabia, Iraq, the UAE, and Venezuela. Reliance's refinery can process multiple grades of crude rather than depending on a single variety, allowing the company to buy whichever grade offers the best pricing at any given time. This flexibility helps optimize input costs. However, because crude oil prices are tied to global supply chain dynamics, price swings have a significant impact on profitability.
Joint Venture — RBML (Jio-BP): A 51:49 joint venture between Reliance and British Petroleum, focused on capturing the future of the fuel and mobility market. It aims to expand Reliance's retail fuel outlets and grow its airport presence for Aviation Turbine Fuel (ATF), with a target of net carbon zero by 2035.
2. Retail
Retail is Reliance's second-largest revenue segment, with 20,169 physical stores as of Q1 FY27. The business is led by Isha Ambani and spans both physical and digital channels.
Q1 FY27 Performance: Revenue Rs 90,408 crore (+7.4% YoY, or +11.6% adjusted for the demerger of Consumer Brands), EBITDA Rs 6,309 crore (-1.1% YoY). The margin dip reflects planned investments in scaling digital commerce.
| Category | Brands / Details |
|---|---|
| Grocery | Smart Bazaar (1,000+ stores), Smart Point, Fresh Pik, Seven Eleven (franchise in India) |
| Fashion & Lifestyle | Trends, Trends Woman, Centro, Yousta, Azorte (1,500+ stores) |
| Electronics | Reliance Digital, My Jio Stores (now offering quick delivery) |
| Pharmacy | Netmeds |
| Jewelry | Reliance Jewels |
| Footwear | Reliance Footprints |
| FMCG | Reliance Consumer Products Ltd — Rs 22,000 Cr+ revenue in FY26. Brands include Campa, Velvette, Sosyo, Raskik, SIL Food, and others |
| Petrol Retail | Jio-BP outlets |
Digital: JioMart operates in 1,200+ cities and offers 30-minute quick delivery in 10 major cities. In Q4 FY26, average daily orders grew 300% year-over-year and 29% quarter-over-quarter.
3. Jio Platforms
Jio launched in 2015 as a telecom business, competing directly with Bharti Airtel and other service providers. Today, it has evolved well beyond telecom into Jio Platforms — Reliance's most forward-looking venture in the technology space.
Q1 FY27 Performance: Revenue Rs 45,961 crore (+12% YoY), EBITDA Rs 20,865 crore (+15.1% YoY) with 150 bps of margin expansion to 53.3%. PAT Rs 7,764 crore (+9.2% YoY).
Key Operating Metrics:
| Metric | Q1 FY26 | Q1 FY27 | Change |
|---|---|---|---|
| Subscriber Base | 498.1 Mn | 533.3 Mn | +7.1% |
| 5G Users | ~212 Mn | ~285 Mn | +34.4% |
| ARPU | Rs 208.8/month | Rs 215.6/month | +Rs 7 YoY |
| Data Traffic | 54.7 Bn GB | 69.4 Bn GB | +26.9% |
| Per Capita Data | 37.0 GB/month | 43.7 GB/month | +18.1% |
| Fixed Broadband | ~20 Mn | 28.6 Mn | +43% |
| Monthly Churn | 1.8% | 1.6% | -20 bps |
Verticals:
- Connectivity: Mobile SIM connectivity, Jio Fiber, Jio AirFiber (14 Mn subscribers, over 78% FWA market share in India), and Jio Bharat
- Digital Platforms & Entertainment: My Jio App, Jio Saavn, Jio TV, Jio Games, and Jio AI Cloud
- Enterprise & Future Tech: Enterprise Services, Reliance Intelligence, Jio Brain (AI platform), 6G Research, and LEO Satellite broadband
4. JioStar (Media)
Q1 FY27 Performance: Operating revenue Rs 10,946 crore (+14% YoY), EBITDA from operations Rs 933 crore (+31% YoY). JioHotstar reached 530 Mn monthly active users. IPL 2026 set records as the biggest cricket event in history, with 700 Mn platform users during the tournament.
5. Oil and Gas
This segment covers the exploration and extraction of natural gas and crude oil from onshore and offshore reserves.
Q1 FY27 Performance: Revenue Rs 6,298 crore (+3.2% YoY), EBITDA Rs 4,973 crore (-0.5% YoY).
Key assets include the KG-D6 block (a deepwater gas field) and Coal Bed Methane (CBM). Reliance continues to explore new opportunities, though the existing KG-D6 block faces declining reservoir pressure. This segment contributes only about 3% of Reliance's overall revenue.
6. New Energy
New Energy is a recently launched vertical that remains in its heavy investment phase. During the recent AGM, Anant Ambani confirmed that this business will soon begin contributing to Reliance's financial performance.
Focus Areas: Solar, wind, green hydrogen, and batteries.
Reliance has set up a Solar PV manufacturing business and is building the world's largest single-site facility of its kind, with plans to expand annual capacity from 10 GWp to 20 GWp. The facility is already operational — approximately 1 GWp of HJT modules have been produced and are ALMM certified.
The Dhirubhai Ambani Green Energy Complex in Jamnagar spans 5,000 acres and houses solar panel production, battery manufacturing, electrolyzer production, and power electronics in a single integrated facility.
Future Plans:
- Reliance Battery Giga Factory (scaling to 120 GWh annual capacity; 40 GWh to be commissioned this year)
- Kutch Mega Solar Project
- Electrolyzer Giga Factory
- Green Hydrogen and CBG (Compressed Biogas)
- US$3 Bn contract with Samsung C&T for green ammonia
Bernstein estimates that Reliance's new energy business could generate $10 to $15 billion in revenue by 2030.
Balance Sheet Strength
| Metric | Mar 2026 | Jun 2026 |
|---|---|---|
| Net Debt | Rs 1,24,717 Cr | Rs 1,22,914 Cr ($13.0 Bn) |
| LTM EBITDA | Rs 2,07,911 Cr | Rs 2,03,954 Cr ($21.5 Bn) |
| Net Debt / LTM EBITDA | 0.60x | 0.60x |
| Capex (Q1 FY27) | — | Rs 38,682 Cr |
| Credit Rating | S&P: A- / Moody's: Baa1 | — |
Technical Analysis
The weekly chart of Reliance Industries is below.
Weekly chart of Reliance Industries as of July 17, 2026, sourced from TradingView.
All-Time High: Rs 1,611.80 (52-week high, reached in mid-2024)
Current Price: Rs 1,327.20
% Away from All-Time High: -17.6%
The stock is trading below both its 10-week and 30-week EMAs. RSI is at 45.01, sitting in neutral territory. After peaking near Rs 1,611 in mid-2024, it corrected to a low of Rs 1,253.20 and has since consolidated in the Rs 1,260–1,400 range.
Brokerage Targets
Out of 32 analysts covering Reliance, 31 recommend buying the stock and only 1 recommends selling. The average 12-month target price is Rs 1,697, with a high of Rs 1,910 and a low of Rs 1,510. Equirus Securities has a September 2027 target of Rs 1,586. At the average target of Rs 1,697, the stock offers approximately 28% upside from the current price of Rs 1,327.
Jio IPO Update
Reliance plans to launch the Jio IPO during the current financial year (FY27). With the June 2026 DRHP filing, the valuation of Jio Platforms is estimated between Rs 9.5 lakh crore and Rs 11.5 lakh crore — roughly in line with or slightly below peer Bharti Airtel.
This listing is expected to unlock significant value and attract new investors looking for dedicated exposure to India's digital infrastructure.
Conclusion
As a large conglomerate, Reliance benefits from the stability that diversification provides across multiple sectors. However, that diversification also has a downside: even when certain segments deliver strong growth, their relatively small share of overall revenue limits the impact on the company's total performance.
Many investors would prefer to invest solely in Reliance's Jio business or its retail business but hesitate because other, slower-growth segments dilute the effect on the stock price. As a result, many are waiting for these businesses to be listed separately for cleaner investment exposure.
All financial data is sourced from the Reliance Industries Q1 FY27 Analyst Presentation, the Q4 FY26 Media Release, and the RIL Integrated Annual Report 2025-26. Weekly chart sourced from TradingView. Brokerage estimates compiled from Business Standard and AlphaSpread.
Sources and references
- Reliance Industries — Investor Relations — investor information and disclosures
- Reliance Industries — Financial Reporting — quarterly results, presentations and annual reports
- BSE India — stock exchange filings and disclosures
This analysis is for educational purposes only and does not constitute investment advice.
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